The
House of Representatives Committee on Industry has endorsed the new
automotive policy of the Federal Government, which seeks to increase the
tariff on imported cars.
This is coming as the Minister of
Industry, Trade and Investment, Mr. Olusegun Aganga, said the potential
for the automobile industry plan was to save as much as N550bn.
The Chairman, House Committee on
Industry, Mr. Mohammed Onawo, said the implementation of the policy
would attract new investments to the sector, protect local automotive
manufacturers and create employment.
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Onawo, in a statement made available to
our correspondent on Thursday in Abuja by the Federal Ministry of
Industry, Trade and Investment, said increasing the tariff on imported
cars would encourage the businesses of local manufacturers.
“The House Committee on Industry is
very insistent on the fact that anybody who is going to import a
complete car is going to pay a higher tariff than somebody who is going
to manufacture here because that is the only way that you will be able
to protect who is going to create employment here,” he was quoted as
saying.
Onawo, who was accompanied by 12 other
members of the committee on an oversight visit to the ministry, said he
was pleased to hear about the new measures.
He added, “Of particular interest to me
is how to use tariff to protect local manufacturers. One of the major
challenges facing those that are manufacturing cars in Nigeria is the
tariff structure.
“If somebody who is importing a complete car is paying less than somebody who is manufacturing, then you are not encouraging the person who is manufacturing. With the new measures being put in place by the ministry, I am sure it will protect those investors who are willing to come to Nigeria and invest by assembling or manufacturing vehicles here.”
In his response, Aganga said the
ministry would continue to partner stakeholders in the implementation of
its Industrial Revolution Plan.
He stated that the new automotive policy
would have a catalytic effect of fast-tracking industrialisation,
creating jobs and generating wealth for the country.
The minister said, “The new measures to
transform the automotive sector is part of our industrial revolution
plan, which is integrated, holistic and based on areas where we have
comparative and competitive advantages as a country.
“Likewise, the potential for Nigeria’s automobile industry plan is to save as much as N550bn ($3.5bn) through the reduction of imports. We also have the regional export potential into the West and Central African market, coupled with the availability of a large and trainable workforce.
“Recognising the strategic and catalytic effects of the automotive industry in industrialisation, job creation and wealth formation, among others, emerging economies like Brazil, China, Malaysia, India, Iran, Indonesia, Thailand and South Africa took deliberate steps to develop their automotive industry between the 1960s and the 1980s. Nigeria started about the same time in the 1970s. These countries have, however, developed well-advanced automotive industries now, in contrast to Nigeria.”
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